Every time on the occasion of New Year, people take new resolutions to improve their lives. Some promise to give up bad habits, while others talk about paying attention to fitness or diet. At the same time, many people also resolve to become financially strong and save. Saving is a process that requires time and discipline. If you follow this method and invest in 2025, you can add a good amount of funds to your portfolio.
Investing in mutual funds is similar to indirect investment in the stock market. In this, money of many investors is pooled and invested in various financial instruments like shares, bonds and money markets. It is operated by asset management companies. The risk in mutual funds is relatively low because the money is invested in different places. The minimum investment amount starts from just Rs 500, making it suitable for small and new investors as well.
Financial experts suggest investing in mutual funds for a period of seven years or more. During this time, a combination of large-cap, mid-cap and small-cap funds should be taken advantage of. Large-cap funds include options like ICICI Prudential Bluechip Fund, Nippon India Large Cap Fund and HDFC Top 100 Fund. Mid-cap funds include Motilal Oswal Midcap Fund, HDFC Midcap Opportunities Fund, and Edelweiss Midcap Fund. Among small-cap funds, Motilal Oswal Small Cap and Tata Small Cap Fund are considered good for investment.
Systematic Investment Plan (SIP) is considered to be the most convenient and effective way of investment. In this, a fixed amount is invested every month, due to which the average cost of investment remains constant despite market fluctuations. According to experts, it encourages regular investments and helps in getting guaranteed returns in the long run.
